IWG

International Workplace Group PLC

Real Estate First-pass screen £1.8bn

430/1000 Overall fit

AI beneficiary 35% 38

Operating leverage 25% 65

Valuation 25% 30

Downside protection 15% 42

First-pass take

Coworking operator with capital-light franchise model (shifting from 65% company-owned to 50/50 franchised mix) offering structural leverage to occupancy recovery. However, 2021 loss-making (£270m post-tax), negative pre-capex cash flow (£239m), and no explicit AI revenue exposure. Hybrid working is real but cyclical, not AI-driven. Net debt ~5x EBITDA limits downside protection.

Flags

staleloss-makingno-valuation-datanet-debtcyclicalcash-negative